Court Orders Economical to Mail VC & Co. Materials to Mutual
TORONTO, May 3 /CNW/ - VC & Co. Advisory Limited, which is advising the
more than 100 mutual policyholders of Economical Mutual Insurance
Company seeking to replace its current board of directors, is hosting
an information meeting for mutual policyholders tonight in Waterloo
regarding the important initiative for change that is underway at
Economical. The information meeting will be an opportunity for mutual
policyholders to hear more about the compelling reasons to elect a new
board at the May 26, 2011 policyholders' meeting. Mutual policyholders
will also have an opportunity to ask questions about the Policyholder
Proposals initiative and to meet some of the new proposed directors of
Economical. The information session will take place at 7:00 p.m. in The
Regent Room at the Waterloo Inn Conference Hotel, 475 King Street
Contrary to statements made by the current board, mutual policyholders
will not be required to register and divulge personal contact
information to attend the information meeting. Unlike the current
board, VC&Co. has not hired a third-party proxy solicitation firm to
repeatedly telephone mutual policyholders at home to obtain their
proxies, and will not do so.
"The information meeting will give mutual policyholders an opportunity
to meet some of the Policyholder Nominees and to hear first-hand about
the Policyholder Proposals initiative," said Michael D. Woollcombe,
Executive Vice-President of VC & Co. Advisory Limited and one of the
Policyholder Nominees. "This initiative is about unlocking and
delivering value to mutual policyholders and making a better Economical
for all stakeholders. We look forward to an engaging discussion and an
opportunity to address questions from mutual policyholders."
Court Orders Mailing of Written Communications to Mutual Policyholders
VC&Co. also announced that Economical has been ordered by the Ontario
Superior Court of Justice to cause the distribution of additional
written communications to all mutual policyholders on behalf of VC&Co.
VC&Co. was forced bring a Court application after Economical's current
board refused to mail additional communications to mutual policyholders
beyond its dissident circular.
The refusal was part of the current board's strategy to prevent mutual
policyholders from obtaining information needed to make an informed
decision about the current board's leadership. In an endorsement, which
was issued yesterday, Justice H.J. Wilton-Siegel stated:
"… there is the potential for real prejudice to the policyholders if the
order were not granted. Economical has failed to provide a valid
justification for preventing policyholders from receiving written
communications that the dissident shareholder group considers relevant
to the exercise of policyholder votes. … It would also effectively
allow Economical to send out further communications without risk of
contradictions by the Dissidents. Ultimately, this is to the prejudice
of the policyholders, who must be presumed to be capable of making
their own decisions with respect to the issue before them…"
Following the release of the decision, VC&Co. sent a letter to all
mutual policyholders reiterating the need to support the election of a
new board at the May 26, 2011 policyholders' meeting. In its letter,
VC&Co. states: "Having consistently failed you in the past, there is
simply too much at stake to leave the current board in place to fail
you again. You deserve much better as an owner of Economical."
In addition to describing how a new board will accelerate the delivery
of value to mutual policyholders and make a better Economical for all
stakeholders, VC&Co.'s letter exposes a number of misleading statements
that have been made by the current board. The full text of this letter
is available at www.concernedeconomical.com.
Vote only the YELLOW proxy
Mutual policyholders are encouraged to complete and return only their YELLOW proxy. YELLOW proxies must be returned by May 13, 2011 in order to be deposited in
time to be used at the upcoming meeting. Mutual policyholders with
questions or who require assistance in completing and returning the YELLOW proxy should telephone either Michael D. Woollcombe or Shane A. Priemer
of VC & Co. Advisory Limited at 416-864-2274.
For further information:
Michael D. Woollcombe
Executive Vice-President, VC & Co. Advisory Limited
Alan Bayless, Client Partner
Longview Communications Inc.